A working paper by the Midwest Climate Collaborative 
© Heather Navarro and Anukriti Lirio Hittle                                                                       

Sept. 9, 2024

Overview and Scope

Unprecedented amounts of federal funds are being rolled out for climate action through the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA). This document examines how to leverage federal funds and use the grants process to implement priority climate projects in the Midwest. It describes the need for charting a “funding map” that identifies gaps in the region and aims to help navigate the funding landscape, particularly for smaller, under-resourced and capacity-constrained communities, by building funding pathways to regional and national opportunities. 

This working paper uses the Climate Pollution Reduction Grants (CPRG) as a window into how communities are approaching competitive funding opportunities through the federal government and what else is needed in order for communities in the Midwest to advance climate priorities. Here, “community” refers to any federal grant applicant applying for a place-based grant, and includes nonprofits, tribes, local governments, and governmental entities serving specific jurisdictions or regions.

We assert that for entities and coalitions that comprise smaller and under-resourced communities, particularly those in the Midwest, competitive grants are not the optimal and most equitable way for obtaining funds to expand clean energy and build resilience. We make recommendations on how the federal grants process could be modified to benefit smaller governments and communities, and how these entities can leverage the process to achieve maximal climate impact, particularly for their marginalized populations. To improve the process in the Midwest, we describe how to gather regional priorities and steps that the Midwest Climate Collaborative (MCC) can take in the current funding landscape to move the needle on climate action for smaller communities. To help communities in the Midwest realize their climate change goals in an equitable manner, MCC aims to compile a funding map and help leverage lessons learned from the federal grants process that in turn can attract funders to fill the funding gaps that exist.